Resort at Pikes Peak LLC previously under scrutiny by state over possible securities violations

By Alicia Wallace Camera Business Writer

Posted:
10/26/2012 06:17:42 PM MDT

Updated:
10/26/2012 06:18:05 PM MDT

A Boulder County company that eyed developing condominiums and a ski resort on Pikes Peak in Colorado Springs -- and later was investigated by the state for possible securities violations -- recently filed for Chapter 11 bankruptcy protection, court records show.

The Resort At Pikes Peak LLC, based in Nederland, estimated it owes between $500,000 and $1 million to fewer than 50 creditors, according to documents filed Oct. 16 with the U.S. Bankruptcy Court in Colorado. Estimated assets were in the range of $1 million to $10 million.

Additional details about the liabilities and financial state of the business -- which also has operated as RPP and Skipikespeak -- remain unclear, as other required documents and schedules were not included with the voluntary petition. After receiving a notice of deficiency, The Resort At Pikes Peak was given until Tuesday to file additional information such as a statement of financial affairs, tax return and list of equity security holders.

John Calvin Ball, the owner of The Resort At Pikes Peak, did not return calls or e-mails seeking comment.

The bankruptcy filing comes nearly two years after Colorado's securities commissioner filed a cease-and-desist order against Ball, alleging he violated the state's securities act by offering an investment opportunity via a website.

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In that 2010 complaint, Division of Securities officials also claimed Ball -- who allegedly promoted the opportunity by saying a $10,000 investment could land a return of $16,400 -- failed to inform potential investors of the risk that he might not be able to buy the land for the ski resort.

Four years ago, Ball proposed buying a 320-acre parcel on the backside of Pikes Pike to build a ski resort, 350 condominiums and, possibly, a 300-room hotel. Ball was progressing in talks to buy the land from property owner Harvey Carter, a Colorado climbing legend who long expressed a desire to bring skiing back to Pikes Peak.

At that time, Carter told the Gazette newspaper in Colorado Springs that the ski resort was starting to come to fruition.

"The people of Colorado Springs deserve a place to ski, just like I had growing up," he was quoted as saying in June 2008.

Despite the securities investigation and complaint, Carter and Ball appear to have continued moving forward on those discussions.

Teller County property records show that The Resort at Pikes Peak LLC purchased the 320 acres -- which consists of one 300-acre property and another 20-acre parcel -- from Carter on Dec. 30, 2011.

Carter passed away at the age of 83 on March 13.

The sales price was not disclosed, Teller County Assessor's Office officials said. The purchase price was estimated at $4 million, according to the 2010 securities complaint.

As of Friday, no proposal has come before Teller's Board of County Commissioners, county officials said. The three commissioners could not immediately be reached for comment.

'Greenest' resort

The skipikespeak.com website is offline; however, a Facebook page connected to the resort has been active this year. On the "About" page, officials classified Ski Pikes Peak as "America's newest AND GREENEST year-round ski resort," adding the business "brings skiing, snowboarding and other diverse winter and summer sports to families in an eco-friendly ski area on Pikes Peak, Colorado."

"Our ultimate goal is to be a self-sustaining, energy-generating facility completely off the energy grid," company officials wrote on the page.

The majority of the posts made to that Facebook page throughout the year include embedded YouTube videos of skiing -- including a couple related to Pikes Peak.

Several of the posts came on March 12 and March 13, with one stating, "Yep, there's snow up here. Our reporter is standing in it to show us how much. Good skiing too," next to an embedded KKTV 11 news clip from 2008.

When called on Friday, no one answered the business phone listed on the page and the voicemail box was full.

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